Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-08-09
Investigating Ives Management.


THE CINCINNATI, HAMILTON AND DAYTON COMMITTEE
AT WORK ON THE ACCOUNTS IN NEW YORK.
The committee OF Cincinnati, Hamilton and
Dayton stock holders met Mr.. Ives In New York
yesterday, and the work Of inquiry was COM
menced with closed doors. The Investigation
well be thorough and complete, and will cover all
the financial transactions OF the road under the
Ives management. They will seek to ascertain
first the outstanding amount Of preferred stock.
According to the cOmpany's official reports 1t was
s449, 600 at the close OF the fiscal year ended
March 81, 1886, and s., 10000 on March 81,
1887. There is reason to believe that still more
has been put out since the aforementioned date.
~ Inc 0sher points 10 0e eonslderea are now mucn
lied to be issued by the board OF directors;
whether the company received, as required by
money; what has become OF the cash tie COM
pany had on hand according to the last annual
report on March 81, 1887. to wit, s. 9a5, 81;
gauge and meeting other expenses In connection
with the narrow gauge lines, which they bought
on their private account, and which they at
tempted to saddle on to the Cincinnati, Hamilton
and aayton through lease, paid themselves with
$500. 900 guaranteed bonds, or three times the
amount OF the cost of those lines to them. Later
the investigating committee met the committee Of
the Cincinnati stockholders at the Fifth Avenue
Hotel, and the latter reported progress. The
stockholders committee was not prepared to make
final report, and the meeting adjourned TO meet
TO-DAY noon at the office OF the Cincinnati, Hami-
ton and Dayton road In New York city.
A Cincinnati special to the Philadelphia Press
says: The newspapers to-day bring the fact to
light that not only are Ives and Stayner charged
with appropr1ating over 81 OOO 600 Of Cincinnati
Hamilton and Dayton securities and charging
themselves with them and taking S46O 900 OF the
additional issue OF common stock without paying
for IT, but also of actually taking the money OF the
railroad and charging themselves with that. 1t
seems to be just about the same thing that Z. L.
Harper did, and one OF Ives and StayncrS tinan-
cial friends complained to-day that they were
suffering an undue persecution because OF the
Harper failure. The investigating committee that
is in New York means business and at least one
member OF it has said that Henry S. Ives ought 10
be put in the penitentiary block OF one hundred
shares OF c. Il. and ID. preferred stock Was offered
change to-day at 81 with no takers. c., ii. and
d. per cent bonds sold ut 10.
ONE OF IVES DEALS.
A New York special to the Philadelphia Press
says: The presence OF VIM. X. McKeen, OF Indian
apolis, in the city, anx1ously Watching over his
interest in the Terre Haute and Indianapolis,
which he sold out from under the wing OF the
pe1nsylyania gives zest to the story never before
road to Henry S. Ives. He agreed TO sell his in
tcrest to Mr.. Ives Tor round million in cash and
approved securities. Ives paid him S44,. 900, pre-
suInably out OF the Cincinnati, Hamilton and
Dayton treasury, and received certificate for the
stock In the name OF Ii. $. Ives. trustee OF the
Cincinnati, Hamilton and Dayton: This stock
Is now hypOthecated but it Is tntimatcd
that the certificate has since been changed.
Money lenders would hesitate about ac-
cepting trusteed stock without a proper
power Of attorney, and IL is said that this GER
t1ficate was returned and reSSucd 10 II. s. Ives In
dividually, which, of course, was easy enough, as
he controlled the offices OF the company. For the
remainder of the pay ment Of the million he gave
note leaving the stock in the hands OF Mir. Mckcen
as security, though he carried the proxy. He
elected himself president. One OF his first. acts
was to remove The $SOO.O00 cash Which the COM
pany had in banks at ST. Louis. Terre Haute, and
indianapolis, and put it on deposit with the bank
ing house or II. s. Ives & Co. The company had
also authorized the issue OF lot OF bonds OF which
$500 900 still in the treasury These, TOO it is
charged, have been taken out and Hypothetical.
The receipts OF the road since then amounting to
about half million at least, have also been de-
posted with Ives & Co., which makes the company
creditor for about $780, 600 without any secur
1ty whatever.